Chapter 15 Quiz

Tom is the project manager of the Organizational Development team at Extreme Rugs. Tom's team has been assigned the task of studying and evaluating Extreme Rugs' organizational structure. Tom divided the tasks among the team members to collect preliminary information on different elements of Extreme Rugs' structure. Jeremy was asked to collect information on the degree to which tasks are divided into separate jobs. Joy was asked to collect information on formal authority relationships. Alice started looking into how many employees each manager has responsibility for, and Kathy was asked to collect evidence on the degree to which rules and procedures are used to standardize behaviors at Extreme Rugs. Tom himself decided to collect information and evidence on where exactly decisions are formally made at Extreme Rugs. The team decided to meet with information in two weeks. On which element of organizational structure was Kathy asked to collect evidence? A. Chain of command B. Span of control C. Formalization D. Centralization E. Work specialization

Formalization

A firm has diversified to the point that the products it sells are very different and managing them has become overwhelming. Which of the following structures would help this firm? A. Geographic B. Client-based C. Simple D. Product E. Functional

Product

If decision making is pushed down to lower-level employees, and these employees feel empowered to make decisions on their own, an organization has a _____ structure. A. flat B. centralized C. decentralized D. narrow E. wide

decentralized

Which of the following statements is true? A. Organic organizations are typified by a structure that relies on high degrees of work specialization. B. A high level of work specialization tends to bring about a high level of work formalization. C. Narrow spans of control tend to be associated with decentralized decision making. D. Wide spans of control tend to be associated with centralized decision making. E. Mechanistic organizations are typified by a structure that relies on low levels of work formalization.

A high level of work specialization tends to bring about a high level of work formalization.

Tom is the project manager of the Organizational Development team at Extreme Rugs. Tom's team has been assigned the task of studying and evaluating Extreme Rugs' organizational structure. Tom divided the tasks among the team members to collect preliminary information on different elements of Extreme Rugs' structure. Jeremy was asked to collect information on the degree to which tasks are divided into separate jobs. Joy was asked to collect information on formal authority relationships. Alice started looking into how many employees each manager has responsibility for, and Kathy was asked to collect evidence on the degree to which rules and procedures are used to standardize behaviors at Extreme Rugs. Tom himself decided to collect information and evidence on where exactly decisions are formally made at Extreme Rugs. The team decided to meet with information in two weeks. On which element of organizational structure is Tom collecting information? A. Span of control B. Work specialization C. Chain of command D. Formalization E. Centralization

Centralization

Tom is the project manager of the Organizational Development team at Extreme Rugs. Tom's team has been assigned the task of studying and evaluating Extreme Rugs' organizational structure. Tom divided the tasks among the team members to collect preliminary information on different elements of Extreme Rugs' structure. Jeremy was asked to collect information on the degree to which tasks are divided into separate jobs. Joy was asked to collect information on formal authority relationships. Alice started looking into how many employees each manager has responsibility for, and Kathy was asked to collect evidence on the degree to which rules and procedures are used to standardize behaviors at Extreme Rugs. Tom himself decided to collect information and evidence on where exactly decisions are formally made at Extreme Rugs. The team decided to meet with information in two weeks. Joy was asked to collect information on which of the following elements of the organizational structure? A. Formalization B. Span of control C. Work specialization D. Chain of command E. Centralization

Chain of command

Splash Hair Care Inc. is growing very fast in both sales and number of employees. It manufactures and sells hair products for youth, male, female, elderly, and ethnic populations all over the United States and several other countries. So far, the company has followed a simple structure. However, with fast-paced growth, it has become a necessity that the company explores other organizational structures. John, a long-time employee at Splash Hair Care, has collected information on how some of its competitors have organized their companies. Streaks Inc. groups its employees by their different areas of expertise such as Marketing, Finance, Human Resources, and Operations. Pure Oil, primarily in the United States, groups its activities as Northeast Division, Southeast Division, Northwest Division, Southwest Division, and Central Division. Curlz Inc. has organized its employees according to the accounts they serve, such as Large Company contracts, Internet Sales, Individual Sales, and Small Salon Direct Sales. Finally, Color Lite International has grouped its business units around popular colors such as Red Division, Silver Division, Rainbow Division, Black and Brown Division, and Shades of Blonde Division. Which of the following describes Curlz's organizational structure? A. Product B. Geographic C. Client-based D. Matrix E. Functional

Client-based

Which of the following statements is true about functional organization structure? A. Functional structures are extremely efficient when the organization as a whole has a relatively wide focus. B. One of the main advantages of the functional structure is that it encourages communication across functions. C. One of the main disadvantages of the functional structure is the lack of work specialization. D. Small companies experiencing rapid growth are the only organizations to benefit from a functional structure. E. Functional structures are extremely efficient when the organization has fewer product lines or services.

Functional structures are extremely efficient when the organization has fewer product lines or services.

Splash Hair Care Inc. is growing very fast in both sales and number of employees. It manufactures and sells hair products for youth, male, female, elderly, and ethnic populations all over the United States and several other countries. So far, the company has followed a simple structure. However, with fast-paced growth, it has become a necessity that the company explore other organizational structures. John, a long-time employee at Splash Hair Care, has collected information on how some of its competitors have organized their companies. Streaks Inc. groups its employees by their different areas of expertise such as Marketing, Finance, Human Resources, and Operations. Pure Oil, primarily in the United States, groups its activities as Northeast Division, Southeast Division, Northwest Division, Southwest Division, and Central Division. Curlz Inc. has organized its employees according to the accounts they serve, such as Large Company contracts, Internet Sales, Individual Sales, and Small Salon Direct Sales. Finally, Color Lite International has grouped its business units around popular colors such as Red Division, Silver Division, Rainbow Division, Black and Brown Division, and Shades of Blonde Division. Which of the following describes Pure Oil's organizational structure? A. Geographic B. Product C. Functional D. Client-based E. Matrix

Geographic

Ross and Tony, father and son, opened a large boutique named Tradus in Chicago. Being the owners of the business concern, they decide about the important matters. All the rest of the decisions like product, finance, marketing, and personnel are carried out by the department heads, who have to act according to Ross's and Tony's instructions and orders. Which of the following is true about Tradus? A. It has a very tall organizational structure. B. The degree of formalization is very low in the organization. C. It has a centralized system of decision making. D. It has a narrow span of control. E. It has a matrix organizational structure.

It has a centralized system of decision making

Which of the following is the main reason behind many organizations flattening their organizations? A. It creates a government subsidy qualification. B. It improves employee morale. C. It increases employee performance. D. It provides more rewards for fewer employees. E. It is used to reduce costs and show investors that the company is profitable.

It is used to reduce costs and show investors that the company is profitable.

Splash Hair Care Inc. is growing very fast in both sales and number of employees. It manufactures and sells hair products for youth, male, female, elderly, and ethnic populations all over the United States and several other countries. So far, the company has followed a simple structure. However, with fast-paced growth, it has become a necessity that the company explore other organizational structures. John, a long-time employee at Splash Hair Care, has collected information on how some of its competitors have organized their companies. Streaks Inc. groups its employees by their different areas of expertise such as Marketing, Finance, Human Resources, and Operations. Pure Oil, primarily in the United States, groups its activities as Northeast Division, Southeast Division, Northwest Division, Southwest Division, and Central Division. Curlz Inc. has organized its employees according to the accounts they serve, such as Large Company contracts, Internet Sales, Individual Sales, and Small Salon Direct Sales. Finally, Color Lite International has grouped its business units around popular colors such as Red Division, Silver Division, Rainbow Division, Black and Brown Division, and Shades of Blonde Division. Which of the following describes Color Lite International's organizational structure? A. Geographic B. Client-based C. Product D. Functional E. Matrix

Product

Tom is the project manager of the Organizational Development team at Extreme Rugs. Tom's team has been assigned the task of studying and evaluating Extreme Rugs' organizational structure. Tom divided the tasks among the team members to collect preliminary information on different elements of Extreme Rugs' structure. Jeremy was asked to collect information on the degree to which tasks are divided into separate jobs. Joy was asked to collect information on formal authority relationships. Alice started looking into how many employees each manager has responsibility for, and Kathy was asked to collect evidence on the degree to which rules and procedures are used to standardize behaviors at Extreme Rugs. Tom himself decided to collect information and evidence on where exactly decisions are formally made at Extreme Rugs. The team decided to meet with information in two weeks. Alice is looking into information on which element of organizational structure? A. Chain of command B. Span of control C. Formalization D. Centralization E. Work specialization

Span of control

What is the primary reason for simple structures being perhaps the most common form of organizational design? A. There are more small organizations than large ones. B. Changes in specialization lead to less confusion about how exactly employees are supposed to do their jobs. C. Employees feel less emotionally attached to the firm. D. Employees can come and go with no major ripple effects on the organization. E. Approval for decisions need not be authorized at every step of the hierarchy.

There are more small organizations than large ones.

Tom is the project manager of the Organizational Development team at Extreme Rugs. Tom's team has been assigned the task of studying and evaluating Extreme Rugs' organizational structure. Tom divided the tasks among the team members to collect preliminary information on different elements of Extreme Rugs' structure. Jeremy was asked to collect information on the degree to which tasks are divided into separate jobs. Joy was asked to collect information on formal authority relationships. Alice started looking into how many employees each manager has responsibility for, and Kathy was asked to collect evidence on the degree to which rules and procedures are used to standardize behaviors at Extreme Rugs. Tom himself decided to collect information and evidence on where exactly decisions are formally made at Extreme Rugs. The team decided to meet with information in two weeks. Jeremy was given the job of collecting information on which of the following elements of the organizational structure? A. Work specialization B. Span of control C. Chain of command D. Formalization E. Centralization

Work specialization

Although not much is known about the effect of restructuring on affective commitment, restructuring generally results in _____ level of affective commitment on the part of employees. A. a moderate negative B. a small negative C. no significant D. a large positive E. a moderate positive

a moderate negative

Current research suggests that: A. spans of control in organizations have decreased significantly in recent years. B. a wide span of control is especially important if the manager has substantially more skill or expertise than the subordinates. C. a moderate span of control is best for an organization's productivity. D. the narrower the span of control, the more productive employees become. E. a wide span of control requires organizations to hire many managers.

a moderate span of control is best for an organization's productivity

In Grand Stand Organization, a furniture manufacturing company, the arrival and departure times to and from work are specified to the minute, with time clocks used to control deviant behavior. It can be said that the company is high in: A. decentralization. B. centralization. C. division of labor. D. work differentiation. E. formalization.

formalization

As organizations become larger, they tend to become more _____ in nature. A. simple B. cultural C. flat D. mechanistic E. organic

mechanistic

The degree to which a job requires a number of different activities involving a number of different skills and talents is referred to as: A. variety. B. task significance. C. autonomy. D. task identity. E. feedback.

variety